Redesigning the Food Chain: Trade, Investment and StrategicAlliances in the Orange Juice Industry

摘要

Change in trade barriers and capital flow creates opportunities for redesigning thefood chain. The orange juice chain in U.S. and Brazil provides an interestingillustration of how institutional harmonization, high import tariff rates andcomplementary capabilities open new opportunities for strategic alliances and there-arrangement in the FCOJ chain. This finding has the following implications.First, trade barriers are not enough to support FDI and related internationalizationdecisions. Second, the perspective of market integration creates a positiveenvironment for new strategic alliances and the re-design of the food chain. Andthird, the existence of complementary capabilities between foreign and domesticcompanies is a necessary condition for this type of supply chain re-arrangement.